Why didn't Sony cut the PS3 price in the UK?

David Reeves believes that a PS3 price cut in Europe may have angered console gamers across the world.

The news that the recent PlayStation 3 price cut wasn't all it appeared to be has shocked and angered gamers worldwide lately. Not only does it turn out that the $100 price cut will only cover the 60GB version of the PlayStation 3, which is soon to be discontinued, but Sony has also decided not to extend the price cut to Europe.

Well, Sony, what have you got to say for yourself?

In a recent interview with The Guardian newspaper, David Reeves, the President of SCEE, revealed a few of the factors behind the move.

"We've only been on the [UK] market for three and a bit months. We're actually not doing too badly - we're not selling as well as [Nintendo's] Wii or DS, but seasonality-wise, compared to, say, the PlayStation 2 at the same time we launched it in 2001, we're doing quite well on a regional level...In the US, they've been going for more than six months, so they took the decision that going down in price was a better thing to do," Reeves told The Guardian.

So, the same bland, custard-flavoured type of spin that we've come to expect of designers, producers and politicians everywhere. There was one moment of insight however, when Reeves said that "We thought if we reduced the price [in Europe], we'd annoy a lot of people."

Reeves goes on to argue about how good the value-for-money factor is for the new PlayStation 3 Value Pack, which will be released in Europe and includes Motorstorm, Resistance: Fall of Man, two SixAxis controllers and a 60GB model of the PS3.

"The added value in there is £120 to £125. We know that most people anyway are going to buy two to two-and-half games. So when you do the maths, you have $499, which is £250, plus two games and a SixAxis controller. Which is going to come up to £380 to £390. But there's VAT in Europe, so you have to take 15 percent off, and there's GST [sales tax] in the US, and the average sales tax is 8.5 percent. So when we did the maths, and this is the case in Australia as well, they are exactly the same."

No, not exactly the same and I think the maths are a little off too. In the US they can get a better model of the PS3 (albeit for a limited time) and some different games if they want - the standard bundle includes one game, so the value add is more like £75 to £80 in Europe.

Still, the numbers certainly hold up a fair way if you account for the different vendor margins - typically 15 percent in Europe, as opposed to only seven percent in America - and a close analysis reveals that the price difference between the US and Europe really isn't that massive, though the console is still too expensive for our tastes on a global scale.

Many continue to argue that while the PlayStation 3 is an impressive and powerful machine, it has suffered from poor marketing and a lack of decent launch titles. Sounds about the size of it to us, though things are doubtlessly going to improve when Metal Gear Solid 4 hits as a PS3 exclusive later in the year.

Got your own opinions on the price cuts, or are you just tired of the whole thing? Let us know how you feel about it in the forums.

You get bond bluray free when you sign up for PSN. If bluray is your thing I think the US promo will be coming here soon, thats buy a player ( includes PS3) get 5 free films, admittedly they are not the greatest but nice enough sweetner.

damn it. i got early adopter syndrome again paying full fat price and No extra free bits, (other than bond)
to be honest I had it since launch day, and I think Ive only used it about 10 to 15 times. just waiting for more decent blu-ray movies to come out, and for them to open up the "other" operating systems bit abit more so we can get some media center goodness on the go, as currently there supported codecs are a joke.

Translation:
" Its ok guys we shafted you on the late lauch date for the PS3 in europe so the fact that we are now shafting you on the price is perfectly acceptable. You suckers seem to be lapping it up regardless so we thought we would chuck in a few games that we dont think will sell very well after the good looking E3 lineup to go with the old 60gb PS3s we are also palming off on you"

Analysts are predicting that once the 60GB model is sold out, Sony will drop the price of the 80GB SKU to $499 and possibly release a 120GB SKU for the $599 price point. We'll see if that happens, but the analysts have been right about Sony in the past.

did no one think of asking that dude from Sony why is there a 40% difference in price for the ps3 here compared to the price of the ps3 in Hong Kong, yes i know we have a thing called VAT which is only 17.5% but still dun explain for the other 22.5% difference?

maybe becoz some ppl know u can get it at 40% cheaper else where is why sales for the ps3 are pretty kak here in uk?

Originally Posted by P17NGSwhy is there a 40% difference in price for the ps3 here compared to the price of the ps3 in Hong Kong, yes i know we have a thing called VAT which is only 17.5% but still dun explain for the other 22.5% difference?

Maybe because Japan is where they manufacture the PS3 AND Japan has proven to Sony that it's worth taking a price drop due to higher sales. I mean just look at this http://www.msnbc.msn.com/id/19823610/. So, in a way it does make sense that it is cheaper there than here or in the UK/EU.

Originally Posted by NeogumberculesAnalysts are predicting that once the 60GB model is sold out, Sony will drop the price of the 80GB SKU to $499 and possibly release a 120GB SKU for the $599 price point. We'll see if that happens, but the analysts have been right about Sony in the past.

And no, I have no idea what this has to do with Europe and the UK.

According to David Reeves (SCEE President), the US price cut is just a fire sale, a way of clearing the 60Gb model: "All theyre doing is taking their stock in trade that theyve got at the moment of the 60GB model, marking the price down and it will all be gone by the end of July. He also added that when the stock is shifted, the 60Gb model will be deleted from the Sony catalogue, leaving the higher capacity 80Gb edition back on sale at the original 600 dollar price point, with a free game.

I guess the analysts are weighing up whether or not Sony can afford to go back to the higher price point - and they obviously decided that Sony couldn't afford such a risk...